Offshore marine services provider POSH has reported a steep decline in revenue in the quarter ending 31 March 2017.
The Singapore-based company said it recorded a 42 per cent decline in revenue year-on-year to US$34.3 million. This was mainly due to continued challenging conditions across the industry that resulted in lower utilisation and charter rates across most of its business segments. The company reported a loss of US$5.0 million.
The group reduced general and administrative expenses by 57 per cent year-on-year to US$5.2 million. This was mainly achieved through lower salaries and related spending, as well as from an improvement to its debt position from a year ago.
In the offshore supply vessel segment revenue declined by 31 per cent to US$14.4 million, mainly on lower utilisation and charter rates for new and existing contracts. This segment made a gross loss of US$4.7 million.
In the offshore accommodation segment revenue fell by 65 per cent to US$10.0 million, as POSH Xanadu, a semi-submersible accommodation vessel, completed an extended charter. Two light construction vessels were not deployed during the quarter. This segment also registered a loss.
Captain Gerald Seow, chief executive officer of POSH, said: “Market conditions are expected to remain challenging for FY2017. POSH has a resilient balance sheet. This year we look forward to executing several landmark projects, including the Ichthys central processing facility, Egina floating production, storage and offloading unit and the Shell Prelude floating liquefied natural gas unit. At the same time, we continue to manage costs prudently while pursuing opportunities in the Middle East and Africa, which remain active despite current market conditions.”